Japan-linked machinery maker to go public on Chinese market
NORIYUKI DOI, Nikkei staff writer
SHANGHAI -- Zhejiang Tanaka Seiki, a Japanese-affiliated machinery maker, is moving to debut on the Shenzhen Stock Exchange's startup market.
This marks the first initial public offering on the ChiNext stock market by a Japanese-affiliated company, and is among the few such instances on the wider Chinese market.
Zhejiang Tanaka Seiki has submitted its IPO plans to securities regulators. Approval of the listing and its timing will depend on the regulatory authority's discretion, so the details are still largely undecided.
The Chinese government restricts trading of domestic stocks by foreigners. In principle, Japanese investors will be unable to trade Zhejiang Tanaka Seiki shares.
The company, whose mainstay products include winding machines for coil making, counts Nidec and TDK group among its customers. A former president of Fukushima Prefecture-based TNK is the top shareholder with a 28% interest and also serves as a director.
Zhejiang Tanaka Seiki plans to invest 187 million yuan ($29.9 million) of the proceeds in production facilities.